The main events
Beijing has also adopted an unstable attitude in the face of new US tariffs.
China’s Ministry of Foreign Affairs has promised that China will “fight to the end” with SH.BA in a “tariff war, commercial or other war”, marking China’s strongest rhetoric for US President Donald Trump since entering the White House.
On Tuesday, in response to Trump by imposing an additional 10% fee on Chinese goods, taking the cumulative task on 20%, China’s Foreign Ministry spokesman Lin Jian said: “Exercising extreme pressure on China is the wrong target and the wrong calculation … If the US has other goals and insists on a fuel war, China will fight. to remove her excitement face and return to the right track of dialogue and cooperation as soon as possible. “
Comments on “Any other war” were divided into X by the spokesman of the Ministry of Foreign Affairs. The post was then re-celebrated by the Chinese Embassy in the United States. The embassy reiterated the message, writing: “If war is what the US wants, be it a tariff war, a trade war or any other kind of war, we are ready to fight to the end.”
The Governor of the Bank of England, Andrew Bailey, warned yesterday that a full trade war would pose a “considerable” threat to the British economy, as Donald Trump imposed 25% tariffs in Canada and Mexico, and another 10% tax in China.
Bailey said that any inequality, such as the large surplus of China’s current account, should be addressed in “multilateral forums” rather than bilaterally.
After all, the greatest impact of a commercial war can be on productivity, a measure of economic efficiency, according to banks’ norms. For example, productivity increases through the introduction of new technologies allow the economy to expand without increasing inflation.
A division in “sharing information” transatlantic can have a major impact on increased productivity, HuwThe economist chief at the Bank of England told MPs in the Treasury Election Committee.
“The relationship is broken” is how the Canadians responded to Trump’s tariffs.
“Since Trump began his tariff threats against Canada and his” jokes “to make Canada the 51st US state, I have not bought a single product originating from the US,” said Lynne Allardice78 years old, a retired business owner from New Brunswick, Canada.
“Not a single lettuce leaf or a piece of fruit. I have become a thirsty reader of labels and adopted a policy everywhere, but the US when shopping. I will not visit states while Trump remains in office, and most people I know have approved the same policy. “
The acquaintances, Allardice added, were selling the properties of the US vacation they had for many years.
Jack Daniel Brown-Forman, Lawson Whiting director, said Canadian provinces yesterday taking US store shelves were “worse than a fee” and a “disproportionate response” to taxes imposed by the Trump administration.
Some Canadian provinces have removed US store shelves as part of revenge measures against Donald Trump’s tariffs.
“I mean, this is worse than a fee, because it literally lifting your sales, [and] completely removing our products from the shelves, ”said Whiting in a call after profits.
European shares extend the profits, bond yields jump again
The German stock market has lasted profits, with Dax in Frankfurt opening 1.1% higher. Investors have been cheered by those nicknamed Big Bazooka’s “Big Bazooka”, a fiscal change of the sea that can revive the German economy.
Other European stock markets are postponing it even higher, extending yesterday’s rally. France’s CAC is 0.6% forward while Italy’s FTSE MIB is more than 1%. The Pan-European EURO STOXX Index has increased by 0.5%.
The FTSE 100 London index is making the trend, down with 0.2% or 17 points to 8,737.
Germany’s borrowing costs are still increasing as future partners in the upcoming German government agreed on Tuesday evening to release the controversial debt brake to allow for higher infrastructure and protection costs.
The yield, or the interest rate, in the 30-year-old German government, has increased by 8 base points to 3.15% this morning, after being thrown at 25bps at a stage yesterday. The yield in the 10-year bond has increased by 10bps to 2,886%.
The yield of the two -year government connection to the United Kingdom, known as Gilt, is also increasing, increasing by 11bps to 4,396%, the highest since January 21.
UK norm expectations shift; BCC predicts ‘long and challenging year for UK businesses’
Interest rate expectations have been moved to the UK. Financial markets are no longer fully priced in lowering two norms by the end of the year, anticipating 45 basic points of landing from the current current 4.5% to December.
The change came during the hearing of the Treasury Committee when Bank Governor of England Andrew Bailey and other policymakers discussed the economic perspective.
Meanwhile, the British Chambers of Commerce (BCC) are anticipating “a long and challenging year for UK businesses”.
Has more gloomy about the prospect of growing up for the United Kingdom and said firms will fight to invest while dealing with a host of increased cost pressure.
The business lobby group now expects the UK economy to grow by 0.9% this year, revised by its previous forecast of 1.3%. The limited growth of this year will be mainly driven by the increase in daily government spending. Growth is expected to accelerate slightly to 2026 to 1.4%, but this is also slightly down from the latest forecast of 1.5%.
With businesses facing increased costs of cost after autumn budget, inflation is now expected to remain above the Bank of England’s target until the last quarter of 2027. Inflation is projected to be 2.8% by the end of this year, from 2.2% in the last forecast, before it drops to 2.1% by the end of 2026 and 2% in the quarter of 2027. now.
With stubborn inflationary pressures in the economy, BCC is predicting that the Bank of England will continue to take a careful approach to lowering interest rates. It only expects a decrease in the base rate to 4.25% by the end of 2025, rather than two cuts to 4% as previously predicted. The scale is seen dropping to 4% in 2026. No further cuts are foreseen by the end of 2027.
Vicky pryceThe chairman of the BCC Economic Advisory Council, said:
This will be a long and challenging year for UK businesses. BCC forecast shows an economy that fights without secure foundations to start business investments.
Inflation will continue to be stubborn this year forcing the Bank of England to maintain relatively high interest rates. Global uncertainties will add further dark clouds to the economic climate.
Businesses cannot simply rely on the promise of long -term strategies by the government, they need support now to invest, recruit and trade.
Introduction: Pound rises over $ 1.29 after fear of Trump hit the dollar; Poundland chain for sale
Good morning, and welcome to our business coverage, financial markets and the world economy.
Pound is further increased to the glowing heights of $ 1.29. It is now trading above that level at $ 1,2916, the highest in four months and nearly 0.2%.
Sterling has increased by a general slide in the US dollar, and a brighter mood in markets after a return to American tariffs and the prospect of higher infrastructure and Europe -led defense spending.
Dollari further slipped against a basket of main currencies after news that Donald Trump They will exclude car cars from 25% tariffs in Canada and Mexico for one month as long as they match free trade rules.
The euro also continues its rally and has reached a four-month high against the dollar, amid the optimism caused by the proposed infrastructure fund of € 500 billion and the regulation of its borrowing rules. The single European currency grew by 0.3% to $ 1,0820 for the first time since November 7.
Asian stock markets increasedLeaded by Hang Kong, Hang Seng, with 3.06% while Nikkei of Japan climbed by 0.77%. In China, the Shanghai composition increased by 1.17% while the Shenzhen ingredient earned 1.77%.
South Korea Cospi Added 0.7%, despite news that a pair of fighter jets accidentally threw eight bombs in a civilian circle during a military exercise. Fifteen people were injured, two of them seriously.
The European Dispounter Pepco Group said he is appreciating all strategic options to share his laborious business of 825 Britain shops this year, including a possible sale.
In front of a day the investor, the group ranked in Warsaw, who also owns Pepper AND Dealz Brands said they will focus on the Pepco brand “as the only future format and the driver of the group profits.”
Pepco said in December that he was considering options for Pound The chain, after reserving a depreciation fee of € 775 million, dipping the group at an annual loss of € 662 million.
Group Sales SI for SI-for-Si increased 1.5% to eight weeks to March 2, “with a strong performance by Pepco and Dealz Offset from continuous challenges in Pound. ”
The agenda
-
8.30AM GMT: Eurozone HCOB Construction PMI
-
9.30AM GMT: United Kingdom S&P Construction Construction PMI
-
10:00 GMT: Eurozone retail for January
-
1.15 Afternoon GMT: European Central Bank Interest Decision (Prediction of Reduction of Quarter Point)
-
1.30 Afternoon GMT: US Trade for January, initial unemployment claims for the week of March 1
-
1.45 Afternoon GMT: ECB press conference
2.45 Afternoon GMT: Macroeconomic projections of ECB staff -
3.15 Afternoon GMT: ECB President Christine Lagarde Word
-
8.15 Afternoon GMT: Bank of England Policymaker Christine Mann Speech